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Discussion on Payroll Assistance Loansfor Members Impacted by Impasse

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Today’s Agenda

Opening Remarks Tom Kane, ICUL President/CEO

Welcoming Remarks Illinois State Treasurer Michael W. Frerichs

Background/Status Update Patrick Smith, ICUL SVP Regulatory Affairs

Credit Union 1 “LAP” Overview Brenda Crane, CU1 SVP/COO

Treasurer’s Emergency State Worker Linked Deposit Program

Julian Federle, Chief Policy and Programs Officer

Q & A

Opening RemarksTom Kane, ICUL President/CEO

Welcoming RemarksMichael W. Frerichs

Illinois State Treasurer

Background/Status Update

Patrick Smith ICUL Senior Vice President, Regulatory Affairs

Credit Union 1 “LAP”

Brenda Crane Credit Union 1 SVP/COO

200 E Champaign Ave Rantoul, IL 61866 800.252.6950

Addendum

Addendum Date: July 1, 2015 This Addendum is incorporated into and becomes a part of your LOANLINER® Credit Agreement. Please keep this with to your LOANLINER® Credit Agreement.

Subaccount Name

Account Opening Disclosure

Daily Periodic

Rate

Interest Rate and Interest Charges Annual Percentage Rate (APR)

SPECIAL Unsecured Loan Assistance Program (LAP)

0.00% 9.90%

0.00% APR during the Assistance Period* (defined below*). 9.90% APR shall begin to accrue on the aggregate loan amount provided under the LAP upon the sooner of: a) the 181st day from the date of your last loan advance; b) the 30th calendar day after the Assistance Period* (defined below*) has ended; or c) immediately upon no longer being employed with the State of Illinois, for whatever reason.

0.000000%

0.0271%

Fees Penalty Fees Late Charge $25.00 Return Payment $25.00

Paying Interest You will be charged interest beginning on the 30th calendar day after the end of the Assistance Period* unless the Assistance Period* lasts longer than 180 calendar days from the date of your last loan advance, in which case you will be charged interest beginning on the 181st calendar day from the date of your last loan advance. Notwithstanding the foregoing, you will be charged interest beginning on the date you are no longer employed with the State of Illinois, for whatever reason.

Definitions: The words “We”, “Us” and “Our” mean the credit union. The words “You” and “Your” mean the borrower. How We Will Calculate Your Balance: We will use a balance computation method called daily balance. See Your Membership And Account Agreement for more details. Billing Rights: Information on Your rights to dispute transactions and how to exercise those rights is provided in Your Membership And Agreement. * Assistance Period: The “Assistance Period” is defined as the time period that Your employer, the State of Illinois, has suspended Your full payroll and until the thirty-first (31st) calendar day after Your full payroll is reinstated by Your employer, the State of Illinois. Repayment Term:

A. The Assistance Period Does Not End Within 180 Days From Date Of Your Loan Advance: In the event that Your Employer, the State of Illinois, has not reinstated Your full payroll, for whatever reason, within one hundred eighty (180) calendar days from the date of Your loan advance, upon the 181st calendar day, Your loan shall become immediately due and payable and Your applicable interest rate shall immediately become 9.90% APR. Your repayment term shall be for no greater than forty-eight (48) months beginning on the 181st calendar day and Your minimum monthly payment shall be no less than One Hundred Dollars ($100.00). Your first monthly payment shall be due on the last calendar day of the month that immediately follows the month within which the 181st calendar day falls. Thereafter, Your monthly payment shall be due on the last calendar day of each succeeding month until the entire balance owed is paid in full.

Example: You receive a loan advance on July 15, 2015 in the amount of $500.00. The Assistance Period does not end before January 11, 2016 (180 days from July 15, 2015), Your loan will become immediately due on January 12, 2016 and you will begin to be charged interest at 9.90% APR. You will be required to repay the loan and your first monthly payment will be due on February 29, 2016 in the amount of, in this example, $100.00.

A. End Of Assistance Period: Once the Assistance Period has ended, Your loan shall be immediately due and You shall have thirty

(30) calendar days in which to repay the entire balance owed without incurring interest charges. If You do not repay the entire balance owed within thirty (30) calendar days after the Assistance Period has ended, on the thirty-first (31st) calendar day the applicable APR shall become 9.90% APR and shall continue at that rate until the loan is paid in full. Your repayment term shall be for no greater than forty-eight (48) months beginning with your first monthly payment due date and your minimum monthly payment amount shall be no less than $100.00. Your first monthly payment shall be due on the last calendar day of the month that immediately follows the month within which the thirty-first (31st) calendar day after the Assistance Period ends falls. Thereafter, Your monthly payment shall be due on the last calendar day of each succeeding month until the entire balance owed is paid in full.

Example: You receive a loan advance on July 15, 2015 in the amount of $500.00. Your employer, the State of Illinois, reinstates Your full payroll on September 15, 2015 and, therefore, the Assistance Period ends on October 16, 2015 (31 days from September 15, 2015). You have until November 15, 2015 (30 days from the date the Assistance Period ends) in which to repay your loan without incurring any interest charges. If you do not repay Your loan in full before November 15, 2015, You will begin to be charged interest on November 16, 2015 at the rate of 9.90% APR and your first monthly payment will be due on December 31, 2015 in the amount of, in this example, $100.00.

B. No Longer Employed By State of Illinois: Immediately effective on the date that You are no longer employed with the State of

Illinois, for whatever reason, Your interest rate shall immediately become 9.90% APR and Your loan shall be immediately due. In that event, You agree to repay the loan with interest at 9.90% APR in no more than forty-eight months from the date that You are no longer employed with the State of Illinois, for whatever reason, and your minimum monthly payment shall be no less than $100.00 with the first monthly payment being due on the last calendar of the month that imm ediately follows the month in which the date that You are no longer employed with the State of Illinois, for whatever reason, falls.

Example: You receive a loan advance on July 15, 2015 in the amount of $500.00. As of October 1, 2015, the State of Illinois has not reinstated payroll; however, You are no longer employed with the State of Illinois effective October 1, 2015. On October 1, 2015, Your loan will be immediately due and You will begin to be charged interest at the rate of 9.90% APR. Your first monthly payment will be due on November 30, 2015 in the amount of, in this example, $100.00.

Late Charge: A late charge of $25.00 will be assessed if Your payment is 10 days or more delinquent. If any payment is late, you may be charged the late charge. You agree to pay the late charge if one is charged. In the event that app licable law is interpreted so that interest or other charges collected in connection with any loans under the Plan would exceed permitted limits, any such charge shall be reduced by the amount necessary to reduce the total charge to the permitted limit and sums already collected which exceed the permitted limits shall be credit to the principle amount of the loan or refunded at the discretion of the Credit Union. Return Payment: Returned Payment fee will be assessed on each item returned unpaid and will be added to the outstanding loan balance. Collection Costs. You promise to pay, subject to applicable law, all costs of collecting what you owe under this Agreement and all costs of rea lizing on any security for the Plan including court costs, collection agency fees and reasonable attorney’s fees. We may enter into a contingent or hourly fee arrangement with an attorney or collection agency and you agree that such an Agreement is reasonable. This provision also applies to bankruptcy, appeals or post-judgment proceedings. Additional discounts do not apply to the LAP program. You may prepay Your loan at any time without penalty.

Treasurer’s Emergency State Worker Linked Deposit Loan

Program

Julian Federle Chief Policy and Programs Officer

1. CU Form - Emergency Linked Deposit Form - STO - Final.pdf

2. Emergency Linked Deposit Attachment 1A - STO - Final.pdf

3. Emergency Linked Deposit Attachement 1B - STO - Final.pdf

Q & A

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Thank You!

Patrick Smith ICUL Senior Vice President, Regulatory Affairs 217-744-1802 Patrick.Smith@ICUL.COM